CBRE Global Investors held final closing of CBRE Strategic Partners U.S. Value 8 with equity commitments of $1.34 billion raised from 25 institutional investors in the U.S., Europe, the Middle East and Asia. That would give the new fund about $3.3 billion in purchasing power with leverage.
CBRE Global Investors, CBRE's asset management division, said it is seeking to execute a relatively low-risk, value-add investment strategy for the fund focused on acquiring institutional-quality real estate at a discount to replacement cost. Specifically, the fund plans to target under-leased properties where its leasing and management service lines could add value.
"Our team is focused on executing a cycle-aware investment strategy with an emphasis on creating and maximizing the value of under-leased and under-managed assets through our operational expertise," said Robert Perry, portfolio manager for the fund. "We have already made significant progress in this strategy.“
The fund has invested or committed 59% of the $3.3 billion purchasing power, or $2 billion, in 17 office, multifamily, mixed-use and logistics facilities, and is targeting an 8% current return at asset stabilization for the initial acquisitions.
The fund closed on its most recent acquisition earlier this month, buying the Pointe at West Chester, a 230-unit apartment building in West Chester, PA, for $58.3 million or $253,478/unit.
The Strategic Partners U.S. program has raised $9.1 billion in equity in 11 funds and three co-investment vehicles in the past 17 years.
